Oil price pass-through into inflation in Spain at national and regional level
Ligia Topan (),
César Castro (),
Miguel Jerez () and
Andrés Barge-Gil ()
Additional contact information
Ligia Topan: Universidad Complutense de Madrid
César Castro: Universidad Pública de Navarra
SERIEs: Journal of the Spanish Economic Association, 2020, vol. 11, issue 4, No 6, 583 pages
Abstract Oil price showed sharp fluctuations in recent years which revived the interest in its effect on inflation. In this paper, we discuss the relationship between oil price and inflation in Spain, at national and regional levels, and making the distinction between energy and non-energy inflation. To this end, we fit econometric models to measure the effect of oil price shocks on inflation and to predict them under different scenarios. Our results show that almost half of the volatility of changes in total inflation is explained by changes in oil price. As could be expected, the energy component of inflation drives this effect. We also find that, under the most likely scenarios, 1-year ahead total inflation will be moderate, with relevant differences across regions.
Keywords: Inflation; Deflation; Oil price; Forecasting; Simulation (search for similar items in EconPapers)
JEL-codes: E31 E37 Q43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s13209-020-00222-4 Abstract (text/html)
Working Paper: Oil price pass-through into inflation in Spain at national and regional level (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:series:v:11:y:2020:i:4:d:10.1007_s13209-020-00222-4
Ordering information: This journal article can be ordered from
Access Statistics for this article
SERIEs: Journal of the Spanish Economic Association is currently edited by Nezih Guner
More articles in SERIEs: Journal of the Spanish Economic Association from Springer, Spanish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().